The Political Economy of Regulation in Turkey

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1 The Political Economy of Regulation in Turkey

2

3 Tamer Çetin Fuat Oğuz Editors The Political Economy of Regulation in Turkey

4 Editors Tamer Çetin Department of Economics Yildiz Technical University Yildiz Kampusu Yildiz Besiktas Istanbul, Turkey Fuat Oğuz Baskent University Baglica Kampusu Eskisehir Yolu Baglica Ankara Turkey ISBN e-isbn DOI / Springer New York Dordrecht Heidelberg London Springer Science+Business Media, LLC 2011 All rights reserved. This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden. The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

5 Preface Turkey, along with many emerging economies, is passing through a transformation in its network and infrastructure industries. While the reform effort has its ups and downs, the trend seems irreversible. We have been watching the transformation since its beginning and wanted to bring together a comprehensive and informative book in order to provide an overview of the major issues from electricity generation to water issues. Seeing the whole picture usually helps to distinguish the institutional aspects more clearly. Our belief that institutional factors play a more prominent role in network industries comes from our readings on other countries experiences and the regulatory processes in Turkey. In the book, we tried to reflect complexities that surround decision-making in those markets. This book is the outcome of a collective effort to bring up-to-date information on the regulatory reform in Turkey and provide a general guide to understanding prominent issues. We draw together the main components of the regulatory issues in network industries and the role of competition policy. Regulation and competition policy has to be analyzed together to get a better picture of the nature of regulatory process. We anticipate that the book would be helpful for a wide spectrum of readers, collectively engaged in research, policy, and practice. It is our hope that it will have contributed to the setting of a more relevant research agenda. We gratefully acknowledge the contributions of the authors. Each of our authors has firsthand experience in the relevant subject both academically and in the field. We thank our editor Jon Gurstelle and the staff at Springer for bringing this book into publication. Istanbul, Turkey Ankara, Turkey Tamer Çetin Fuat Oğuz v

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7 Contents 1 Introduction: Regulation and Competition in Turkey... Tamer Çetin and Fuat Oğuz 1 Part I A General Outlook 2 The Place of Regulation Within the Public Law in Turkey... Ali Ulusoy 15 3 The Political Economy of Privatization in Turkey: An Evaluation... Mehmet Cahit Güran 23 4 Regulatory Diffusion in Turkey: A Cross-sectoral Assessment... Isik Ozel and İzak Atiyas 51 5 The Legal Structure of Competition Policy in Turkey... Kerem Cem Sanli and Sahin Ardiyok 75 Part II Lessons from the Markets 6 Regulation in the Turkish Electricity Industry Necmiddin Bağdadioğlu 7 The Regulation of Natural Gas Industry in Turkey Erkan Erdoğdu 8 Regulation and Competition in the Turkish Telecommunications Industry İzak Atiyas vii

8 viii Contents 9 Regulation, Deregulation, and Competition in the Turkish Airline Industry Tamer Çetin and Serkan Benk 10 Political Economy of Water Regulation and the Environment in Turkey Servet Mutlu Index

9 Contributors Sahin Ardiyok ACTECON Economic Consultancy, Istanbul, Turkey; The School of Law, Bilgi University, Istanbul, Turkey; The School of Law, Bilkent University, Ankara, Turkey Izak Atiyas Faculty of Arts and Social Sciences, Sabanci University, Tuzla 34956, Turkey Necmiddin Bağdadioğlu Department of Public Finance, Hacettepe University, 06800, Beytepe Ankara, Turkey Serkan Benk Department of Public Finance, Zonguldak Karaelmas University, 67100, Incivez Zonguldak, Turkey Tamer Çetin Department of Economics, Yildiz Technical University, 34349, Besiktas Istanbul, Turkey Erkan Erdoğdu Judge Business School, University of Cambridge, Cambridge, UK; Energy Market Regulatory Authority, 06530, Yuzuncuyil Ankara, Turkey Mehmet Cahit Güran Department of Public Finance, Hacettepe University, 06800, Beytepe Ankara, Turkey ix

10 x Contributors Servet Mutlu Department of Economics, Baskent University, Baglica Ankara, 06930, Turkey Fuat Oğuz Department of Economics, Baskent University, Baglica Ankara, 06930, Turkey Isik Ozel Faculty of Arts and Social Sciences, Sabanci University, Tuzla 34956, Turkey Kerem Cem Sanlı Law Faculty, Istanbul Bilgi University, 34440, Dolapdere Istanbul, Turkey Ali Ulusoy Faculty of Law, Yasar University, Bornova Izmir, 35040, Turkey

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